MID-CONTINENT CAS. v. Global Enercom Mgmt.
This case involves an insurance coverage dispute between Mid-Continent Casualty Company (appellant insurer) and Global Enercom Management, Inc. (appellee insured). The dispute arose from a fatal accident involving subcontractor Allstates Construction Company employees on a cellular tower repair project in Arkansas, where a pulley system powered by a pick-up truck failed, causing three workers to fall to their deaths. Mid-Continent denied Global Enercom's request for defense and indemnity under Allstates' commercial general liability (CGL) and commercial auto policies, citing an auto exclusion and a contractual liability exclusion. The trial court granted Global Enercom's declaratory judgment motion, finding coverage. The Court of Appeals of Texas, Houston (14th Dist.), affirmed the trial court's judgment, concluding that the auto exclusion did not apply because the pick-up truck did not itself produce the injury (the defective rope did), and the contractual liability exclusion did not apply as the subcontract was deemed executed under Texas law prior to the accident, despite a delay in Global Enercom's signature.